$500K may keep Norwalk's small businesses afloat

Published 8:00 pm, Monday, April 27, 2009

Small retailers in Norwalk hurt by the economic recession could get a share of $500,000 to help stay afloat through a loan program being advanced by the Norwalk Redevelopment Agency.

Under the Urban Retail Loan Program recently presented to Redevelopment commissioners, a loan pool of $500,000 would be made available to retail businesses that have been open for at least one year.

Individual loans up to $50,000 would be available to qualifying retail businesses located within the city's urban renewal/redevelopment plan areas, including SoNo and Wall Street. Restaurants and retail chain businesses would not be eligible for assistance under the program.

"It's just a recognition that the economy is getting more and more difficult for small, independent retail operators," said Timothy T. Sheehan, Redevelopment Agency executive director. "Our goal here is to try and keep retail businesses in business as opposed to trying to go out and secure new tenants for vacant space."

Sheehan said the growth of vacant retail space in South Norwalk and the Wall Street area has been one of the most disheartening aspects of the recession. Such vacancies inhibit redevelopment efforts in both areas, he said.

The loan program would take into consideration how long the business has been in operation, how the business was faring prior to the recession, the current needs of the business, and whether assistance is needed to pay back rent, inventory or for utility bills, according to Sheehan.

The Redevelopment Agency worked with the National Development Council, Inc., to structure the loan program. A combination of agency funds and community development block grants received from the American Recovery and Reinvestment Act would fuel the program, according to Michael Moore, senior project manager for development at the agency.

"The Agency and NDC will structure each loan to extend for a three-year term and to bear 4-percent interest," wrote Moore in an overview. "If the participating enterprise remains in business for three years following receipt of the loan fund the agency will forgive the CDBG portion of the loan."

Owners of two Norwalk retail businesses expressed interest in the program.

The Silk Touch, a floral arrangement business, opened at 5 Main St. four years ago. Last winter proved especially tough, according to owner Danna DiElsi. She said only several customers walked into her store during the months of January and February this year.

"I would be interested in some help, because that's the major thing everyone needs," DiElsi said.

The sale of candies at Sweet Rexies at 136 Washington St. has held up, as candy sales are somewhat recession-proof, but sales of higher-priced toys and gifts have been hurt by the recession, said owner Nanci Lewis.

"My business has been impacted, obviously, like everyone else," Lewis said. "I'd have to research (the loan program) further, but potentially it's something that could benefit my business."

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To advance, the loan program requires Redevelopment Commission approval. The Common Council would have to okay the inclusion of community development block grants, according to Sheehan.